CD&R’s sale of packaging firm valued at $2.3bn

Private investment firm Clayton, Dubilier & Rice has agreed to sell Mauser Group, a global supplier of industrial packaging products, to Stone Canyon Industries in an all-cash transaction valued at $2.3 billion.

Under CD&R’s ownership, Mauser achieved 9 percent annual revenue growth and 15 percent annual EBITDA growth, according to a company statement.

Mauser provides packaging for the storage and transport of agricultural chemicals, including fertilizers, pesticides, herbicides and fungicides; as well as for the food & beverage industry and several other core markets. The company  employs 4,500 and operates more than 100 manufacturing facilities in 88 locations across 18 countries in Europe, North America, South America and Asia, serving more than 12,500 customers.

CD&R, which manages private equity investments on behalf of institutional investors and financial institutions, said in the statement that the transaction “will benefit the market position and long-term growth prospects for both companies and prove to be rewarding for their employees and valued customers.”

The buyer, SCI, is the leading North American manufacturer of rigid metal and plastic containers, through its subsidiary BWAY Corp. “In addition to sales growth, this acquisition expands our product offering with innovative new products, which further support the company’s position as the premier supplier for rigid general line packaging,” said Ken Roessler, BWAY’s president and chief executive.

CD&R’s client base consists of leading university endowments, foundations, public pension funds, corporate pension funds, sovereign wealth funds, funds of funds, financial institutions and high net worth investors. Margins at its portfolio companies have improved at approximately four times the rate of their industry peers, according to the company’s website.

“Mauser has focused on driving strong, sustained revenues in attractive market segments with high growth potential,” said CD&R operating partner Vindi Banga, chairman of Mauser. This has enabled the company to provide “ecological, economical, and socially responsible solutions to help customers both reduce costs and meet critically important sustainability requirements.”

Bank of America Merrill Lynch and Citigroup acted as lead financial advisor and financial advisor, respectively, to CD&R. Goldman Sachs acted as financial advisor to SCI.